معرفت اقتصاد اسلامی

Fiqhi Analysis of Monitory Seigniorage
Based on Its Economical Consequences

Akbar Komijani / Professor of Tehran University                                       komijani@ut.ac.ir

@ Nsrullah Khalili Tirtashi / Faculty member of Naragh Islamic Azad University vvffrreeddcc@gmial.com

Received: 2013/11/13 - Accepted: 2014/03/18

Abstract

Although the government's use of monetary seigniorage can contribute to economic growth, it has some negative results like national currency depreciation and inflation. The consecutive depreciation of national currency's price which seigniorage brings about, poses this question: Is this decision of the government legitimate? If it is supposedly legitimate, is it absolutely legitimate or it is permissible under necessary conditions, or due to paramount interests or acting as a guardian? The aim of this research is to answer these questions, taking into regard the economic consequences of inflation. The assumption of the research is that, due to its negative consequences this method cannot be justified on the grounds of Islamic fiqh. The findings of research in which an analytical is used show that the government is not permitted to use this method for its financing. Based on the fiqh view to which this paper refers, the permission for using this method requires a governmental order and the government has time choice for a limited time only.

Key words: Seigniorage, Inflation tax, Budget Deficit, Economical fiqh, Classification

JEL: E51, E31, P4

The Hidden Costs of Reward and Punishment Policies in Economics

Parviz Davudi / Professorof Shahid Beheshti University                       p_davoodi@yahoo.com

@ Mohammad Javad Tavakoli / Assistant Professor of IKI                                        Tavakoli@Qabas.net

Received: 2013/06/05 - Accepted: 2013/10/13

Abstract

The results of some experimental studies show that the fiscal reward-and- punishment policy can have a negative effect on people's economic activities in some realms, such as working conditions, voluntary activities and environment protection. This effect is known as hidden costs of Incentive and unusual valuable effect. This paper seeks to analyze the economic explanation of this phenomena and investigates its theoretical and Policy-making means. The findings of this research show that most of the investigations made concerning this phenomena point to the functions of reward in reducing intrinsic motives and consider that the solution of the problem lies in choosing between doing without the incentives and using a strong material incentive. This paper observes that incentives can reduce the degree of effect on behavior rather than weaken the inner motivations in benevolence. The political prerequisite of this theory is the simultaneous use of economic and noneconomic incentives in the area of common interest activities. This approach is compatible with the Islamic approaches to separation between spiritual and material motivations and also their simultaneous stimulation in Islamic speech and precepts by emphasizing on spiritual motivations.

Key words: price theory, price effect, Non-Standard price effect, Hidden Costs of Incentivesclassification

JEL: B21, P22, P4.

The Fiqh Principles of Monetary and Capital Markets and Its Applications

Sa’eed Abbas Musavian / Associate professor of culture and Islamic thought research center                  

                                                                                        samosavian@yahoo.com

@ Hassan Bahari Gharamaleki / MA student of economical fiqh, Al-Mustafa International University     

Received: 2013/06/25 - Accepted: 2013/11/01                                     hgbahari@yahoo.com

Abstract

Considering Money and capital markets among the most changeable economic sectors of every country and due to the different kinds of new contracts and monetary and fiscal means, it is necessary to refer to Islamic sources to find the Islamic view of them. Using a descriptive-analytical approach based on the Quran and traditions this paper investigates how Islamic fiqh' deals with the new business contracts. The research concludes that although the primary and practical principles of transaction in Islamic fiqh is the corruption of contract and new way of handling a transaction; the condition of verbal and fiqh principle and the condition of the indications of the Qur'an and traditions, are the soundness and necessity of all contracts and methods as well as the customary, financial and rational instruments, provided that they do not contradict with the general terms of such contracts (such as prohibition of gathering money in an illegal way, prohibition of defraud, harm and harassment ,prohibition of gambling, prohibition of usury).

Key words: Money Market, Capital Market, corruption, gathering money in an illegal way, harm and harassment, defraud, gambling, usury.

JEL: G10, H54, P4.

The Concept and Index of Economic Justice

Sa’eed Mohammad Kazim Rajaii / Associate professor of economics department, IKI

Received: 2013/09/23 - Accepted: 2014/01/20                               smk_rajaee@yahoo.co.uk

Abstract

There are several indicators for assessing economic justice in economic literature. The present paper seeks through an analytical method to elaborate on the concept of economic justice in Islamic thought and proposes an index to assess it. The research findings show that economic justice in its social sense means balance and attainment of sufficiency level of livelihood and negation of exclusive possession of wealth by the rich. Economic justice leads not only to eradicating absolute poverty but also to negating exclusive possession of wealth by the rich. This concept is based on the proposed model of circulation of income and wealth distribution in Islam. The three sides of this model that is family through friendship and mercy -all Muslims through the sense of brotherhood- and government through authority- prevent the appearance of a wide income gap in Islamic society. The existing indexes which lead to inequality are not created to assess this concept and cannot assess it. In order to overcome this shortcoming, the index of the ratio of families at the sufficiency level of livelihood to all families, the indexes of the ratio of working family providers with sufficient income to all family providers and the index of the ratio of expenditure to the expenditure capacity of the society are proposed as indexes of justice, which corresponds to balance.

Key words: justice, balance, livelihood level, index of justice, exclusive possession of wealth.

JEL: D63, C43, P4.

Morality, Rationality and the Problem of Order in Economics

‘Abdulhamid Mo’rrefi Mohammadi / Assistant professor of economics department, Isfahan University

Received: 2013/10/22 - Accepted: 2014/02/23                                             ahmhamid@yahoo.com

Abstract

Conventional neoclassical economics is based on a utilitarian conception of morality and rationality in the sense of maximizing utility. The present paper, reviewing the results of the discussion about the two concepts of morality and rationality in conventional economics, proposes the hypothesis that this approach is ascribed to neglecting institutional dimensions of economy using an analytical method. The research findings show that reducing morality to selfishness and rationality to logical accounting are behind the negligence of institutional dimensions of economics, which caused neoclassical economics fail to explain the social order resulting from economic action. This problem can be solved by providing a more comprehensive definition of morality and rationality linked up with social order. To this end, there is a need for social morality which manifests itself in the form of values and norms and in a kind of institutional structure which has priority over personal morality governing the society. When social order is introduced to economics the relationship between economics and social order can be set forth, but then a new problem relating to the criterion of selecting a basis for social morality will arise. This problem represents a fundamental challenge to all economic schools including Islamic Economies.

Key words: Morality, Economics, Rationality, The problem of order, Institution.

JEL: D80, P36, P4

Evaluation of Truthfulness Index in the Dairy Products Market in Mashhad

Sa’eed Khadivi Rofougar / PhD student of Islamic economics and researcher of scientific and research institute of Pishgaman Pazhoohesh (the pioneers of research)

Received: 2013/08/13 - Accepted: 2014/01/12

Abstract

Evaluating the grade of observing moral standards governing the market plays a fundamental role in the policy-making of improving market conditions. The present paper assesses the index of truthfulness in order to study the grade of observing morality in Mashhad dairy market. This index includes a set of parameters of business morality and a number between zero and one. A compound method based on interviews, questionnaires and available data was used to estimate the index of truthfulness in the wholesale dairy market in Mashhad. The results show that the index of truthfulness in Mashhad dairy market is about 0.54867. Among the most important reasons why the index of truthfulness is low are traditional stockbreeding and primitive culture of consuming dairy products. Therefore, the main concern of government should be to develop the culture of consuming dairy products, modernize stockbreeding and increase the quality of produced milk in order to improve the index of truthfulness.

Key words: Index of truthfulness, Business ethies, Dairy industries, Islamic market, Iran.

JEL : K23, L21, D82, P4

A New Look at the Rule of Dependency of Contract on Intention with
Emphasis on its Applications in Islamic Banking

Mohammad Rasul Ahangaran / Associate professor of Tehran University, Pardis Farabi                     ahangaran@ut.ac.ir

Received: 2013/09/14 - Accepted: 2013/09/14

Abstract

Intent is one of the main pillars of a contract and its terms determine the identity of the contract agreed upon. In the fiqh related to contracts, the function of intent is explained in the context of the rule of dependency of contract on intent. This paper investigates the concept of intent in the rule of dependency of contract on intent, especially in banking contracts. The question that arises here is what kind of intent is necessary for contracts? The paper, considers that the termination of the contract which follows the rule of dependency of contract on intent is related to the kind of contract which lacks intent which is equivalent to creation. The findings of this paper which is based on fiqh analysis show that there are three meaning for intent: will, aim and creation. According to the rule of dependency of contract on intent, intent which means creation has to observed in transactions and one shouldn't confuse it with the other meaning, ie. goal and will. Accordingly, intent which means creation pivots on existence and non-existence and cannot contribute to distinguishing between unreal and real contracts. According to the mentioned explanation of this question, the  accuracy of banking contracts demands customers and bank staffs' close acquaintance with the contract's nature and intent of a contract when it is used as equivalent to creation.

Key words: Contract's nature, Intention, Validity, Banking Contracts, Islamic Banking, Classification.

JEL: G24, L14, P4